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Bahamas: Personal Taxation

Real Estate Taxes

Real estate tax is levied on the following types of land and real property:

  • Developed real estate on the island of New Providence;
  • Developed real estate on other islands if owned by non-Bahamian persons;
  • Undeveloped real estate on New Providence owned by non-Bahamian persons.

Real estate holdings must be declared annually to the Chief Valuation Officer.

At the time of writing, the rates of tax are as follows:

  • Owner-occupied property: 
    Value, $
    Rate of tax, %
    Up to 250,000
    Nil
    250,001 - 500,000
    0.75
    500,001 - 5,000,000
    1.0
    Over 5,000,000
    0.25

  • Other property:
    Value, $
    Rate of tax, %
    Up to 500,000
    1.0
    Over 500,000
    2.0
    Unimproved property in New Providence
    3.0

An amendment to the Stamp Act which provides for exemption from payment of stamp duty on certain financial transactions involving licensed lending institutions went into effect in 2008.

As of July 1, 2008, application may be made for exemption from stamp duty for any of the following: purchase of a dwelling home; purchase and financing of a dwelling home and mortgage; purchase and financing of a dwelling home combined with other domestic loans and mortgages; purchase of vacant land for the construction of a dwelling home; transfer of a home mortgage; and, transfer of a home mortgage combined with other domestic loans.

The government stated that applications for stamp duty exemption in respect of these transactions must be accompanied by a completed affidavit, a copy of a National Insurance card, the first page, signature page, and back sheet of conveyance, and/or first page, signature page, and back sheet of mortgage.

In New Providence, applications must be made to the Financial Secretary at the Ministry of Finance, or to a Family Island Administrator.

The Ministry reminded applicants that purchase or construction of the home must be in respect of a first time home ownership, and the home must be intended for owner occupancy.

“A dwelling house includes a condominium unit or a duplex, exclusive of any part that is not owner-occupied,” stated the Ministry.

“The property must not be used for commercial purpose," it added.

 

 

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